Energy Focus March 2022

THE BUSINESS MAGAZINE FOR ENERGY LEADERS

www.energy-focus.net

March 2022

Taking Tangible Action to Tackle Clean Energy Rollout Exclusive interview with Hornsea Two Senior Programme Director, Patrick Harnett

ALSO IN THIS ISSUE:

Baltic Eagle / Nexstep / NWF Fuels / Agilyx

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EDITOR’S LETTER EDITOR Joe Forshaw  joe@energy-focus.net PROJECT MANAGER Tommy Atkinson  tommy@energy-focus.net PROJECT MANAGER Rob Fenton  rob@energy-focus.net PROJECT MANAGER Christina Allcock  christina@energy-focus.net PROJECT MANAGER Chris Bolderstone  chris@energy-focus.net FINANCE MANAGER Paige Atkins  paige@energy-focus.net SENIOR DESIGNER Liam Woodbine  liam@energy-focus.net CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery CONTRIBUTOR Benjamin Southwold CONTRIBUTOR William Denstone

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk

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The amazing Hornsea Two project in the UK North Sea is truly a wonder of engineering and creativity. Installing wind towers and turbines in harsh, deep, cold, isolated waters, while collaborating with many different global players, on a scale not seen before, was the task laid out

by Denmark’s Ørsted. Quickly approaching final completion, the wind farm is being hailed as one of the greatest modern day human achievements as it begins to ramp up output, eventually providing enough green energy for 2.3 million UK homes (alongside Hornsea One). We talk to Ørsted’s Senior Programme Director for Hornsea Two, Patrick Harnett who gives an insight into challenges, obstacles, hurdles and how the project has pushed and achieved milestones through a very difficult period.

We also hear from Jacqueline Vaessen, GM of Dutch decommissioning organisation Nexstep, who explains that through effective decommissioning projects, the country – and industry – can make huge savings both in terms of finance and CO2 emissions.

Agilyx, the US-based chemical and plastic recycling company, is putting all of its energy into solving the problem of plastic waste by converting material to virgin-equivalent plastic.

It is a process that is highly complicated, but much-needed as global ideas around circular economies grow.

NWF Fuels in the UK is growing its fleet and working hard to innovate in times of energy pricing moving through the roof. It is vital right now that those in the industry make every effort to help consumers as they face skyrocketing bills through no fault of their own. NWF is doing just that by investing in research to move away from fossil fuels and incorporate different products in its portfolio.

Get in touch and tell us how your business is being inventive in these times of change. We’re online through LinkedIn.

Fuel Studios, Kiln House, Pottergate, Norwich NR2 1DX +44 (0) 1603 855 161 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher.

Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2022

Joe Forshaw EDITOR

GET IN TOUCH  +44 (0) 1603 855 161  joe@energy-focus.net www.energy-focus.net

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6/ ØRSTED HORNSEA TWO Taking Tangible Action to Tackle Clean Energy Rollout Covid, conflict, and climate – three of the major challenges of our time, all with economic ripple effects that end up impacting the lives of everyone. The world’s big companies must step up and play their part to leave lasting impact and solve problems. Danish energy business Ørsted is a driving force in the climate category, recently announcing first power from its Hornsea Two wind farm in the UK North Sea – a major achievement from the world’s largest offshore wind power project.

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CONTENTS

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ØRSTED - HORNSEA TWO Taking Tangible Action to Tackle Clean Energy Rollout BALTIC EAGLE OFFSHORE WIND FARM Baltic Sea Megaproject Propels the Clean Energy Transition NEXSTEP Re-Using Existing Elements Key to Energy Transition NWF FUELS Going the Extra Green Mile AGILYX Technology, Expertise, and Purpose Fuels Plastic Change OANDO Proud Heritage Supports All-Conquering Aspirations FORD SOUTH AFRICA Global Auto Business Eyes SA Opportunities www.energy-focus.net / 5

ØRSTED - HORNSEA TWO

Taking Tangible Action

to Tackle Clean Energy Rollout PRODUCTION: Joe Forshaw

Covid, conflict, and climate – three of the major challenges of our time, all with economic ripple effects that end up impacting the lives of everyone. The world’s big companies must step up and play their part to leave lasting impact and solve problems. Danish energy business Ørsted is a driving force in the climate category, recently announcing first power from its Hornsea Two wind farm in the UK North Sea – a major achievement from the world’s largest offshore wind power project. www.energy-focus.net / 7

INDUSTRY FOCUS: WIND ENERGY

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In a true marvel of engineering, ambition, and innovation, the world’s largest offshore wind farm generated first power in December 2021. Brought to the UK market by Ørsted, this mammoth project is the latest in a long list of major successes in the North Sea. When fully operational, the site will produce 1.32 GW and, alongside sister Hornsea One, will generate enough clean energy to power 2.3 million UK homes. This is a statement from Ørsted about what is possible in the transition away from fossil fuelderived energy sources.

Obviously, success on this development has not been easy to come by. Building a major offshore wind farm - utilising a long list of specialist organisations, sourcing funding, and operating across

international borders – during a global pandemic where the importance of workforce safety has been further heightened is a serious challenge.

Senior Programme Director, Patrick Harnett gives Energy Focus an insight into the hurdles the company and its partners have overcome.

“The last two years has seen us dealing with new day-to-day challenges as the pandemic took various unexpected twists and turns,” he explains. “To combat this, we quickly developed new operational procedures to limit the effect of COVID-19 on our operations. With so many people working in relatively close proximity for two weeks at a time it has been key to test people prior to them getting on the Service Operations Vessels (SOVs) and ensuring that isolation periods are

// WITH EACH PROJECT, WE BUILD ON WHAT WE HAVE LEARNED, AND WE ARE GETTING BETTER AND LEANER EACH TIME //

Windhoist team - Northwester

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maintained prior to joining SOVs out at offshore wind sites.”

COVID COOPERATION He praises the great job done by employees to date and suggests downtime has been minimal throughout the supply chain despite some disruption expected when working on a project of this scale. “It’s a real testament to the dedication and resourcefulness of the team that we have remained on schedule,” he adds.

Collaboration has been vital for Hornsea Two. Contractors and service providers have delivered invaluable knowledge, experience, and insight, and the planning involved has allowed for cooperation on site on a scale not seen before.

“There’s always a strong focus on detailed planning and execution across our projects to ensure that everything remains on track, especially with a project like Hornsea Two which had a lot of simultaneous construction activity offshore,” says Harnett.

THE LEADING PROVIDER OF RENEWABLE ENERGY SOLUTIONS For more than three decades DEME Offshore has been pushing the boundaries of what’s possible. Our people have developed some of the most groundbreaking technologies and innovative equipment in the offshore energy industry.

Our fleet is in a class of its own, renowned for their exceptional capabilities. This combination of highly skilled professionals and the most modern, versatile fleet in the sector enables us to provide smart, innovative solutions every time.

www.deme-group.com

INDUSTRY FOCUS: WIND ENERGY

// AS OF 2021, ØRSTED HAS INVESTED OVER £14 BILLION INTO UK OFFSHORE WIND… ASSUMING THESE WIND FARMS ARE CONSENTED AND COMMISSIONED AT THE PLANNED SCALE, WE EXPECT TO INVEST AN ADDITIONAL A SIMILAR AMOUNT AGAIN DURING THE NEXT DECADE //

Hornsea 2 - LR1750

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With full scale operation on the horizon, the teamwork displayed on site throughout the lifetime of the project will act as an example going forward, for all companies involved in the building of energy projects of scale, and will solidify relationships in the future.

“We work very closely with our partner companies and have the finishing line in sight as we install the remaining turbines and continue testing, commissioning, and energising Hornsea Two. A complex construction of this size and location is a true team effort. We owe its success to everyone that worked so hard throughout the pandemic to make it a reality.”

At Hornsea, 165 Siemens Gamesa 8MW turbines required installation, in waters more than 50 miles off the UK east coast, across a site covering more than 460 km2. This enormous task required the input of many people over long periods of time.

Working and living in close quarters was unavoidable, and new ideas and strategies were required. Alongside this development of new ideas, Ørsted was forced to reimagine its purpose – something for which it is well-known.

“The COVID-19 pandemic has given us an opportunity to refocus and, if we make the right choices now, potentially accelerate our progress to a more sustainable, low-carbon future.

The offshore wind sector will play a prominent role in the future and we are confident that through continued collaboration between Government, the industry and business we can deliver environmental and economic benefits for generations to come.

“It has been encouraging to hear the determination from governments in the UK and across the world to maintain their climate ambitions and the understanding that accelerating the transition to a low-carbon economy can both drive our economic recovery and build resilience for the future,” says Harnett.

ØRSTED - HORNSEA TWO

ONE & TWO Extra challenges came for Hornsea Two as the project team had to build adjacent to the enormous Hornsea One site which became fully operational at the end of 2019. At Hornsea One, 174 turbines now produce 1218 MW for the UK National Grid. But at Hornsea Two, new and more powerful turbines are being installed, and everything is bigger including the site.

“Ultimately, Hornsea Two is a bigger project than Hornsea One and

as scale increases new challenges often arise,” says Harnett. “With each project, we build on what we have learned, and we are getting better and leaner each time, while still keeping a strong emphasis on quality and, of course safety. We’ve put together an incredibly talented and knowledgeable team, which has been a key component in the success delivery of the project. In terms of technology, one of the main differentiators between the

two projects is the use of Siemens Gamesa 8 MW 80-167 DD turbines, which can deliver 20% more annual output than those used for Hornsea One. The majority of the blades, which are around six metres longer than on Hornsea One, are manufactured and delivered from the Siemens Gamesa factory in Hull.”

Power generation from these turbines is improved thanks to advances in technology in terms of size and optimisation. Blades on

Seasight Davits revolutionizes the personnel-transfer method in offshore wind Seasight Davits, a leading supplier of davit cranes, has recently launched their Spider – the first “2-in-1” davit crane approved for safely transferring personnel as well as cargo.

CEO, Jimmy Damsgaard says: Spider is a bit of a gamechanger as it eliminates the need for separate personnel-transfer systems, and it gives access to the TPs without using ladders and boat landings. This simplifies the supply chain and lowers the procurement and maintenance costs.”

Though, Spider is launched as a new product, it is basically an up-grade of Seasight Davits’ well-known davit crane combined with a personnel-transfer basket.

“Compromising on safety is never an option – especially not when transferring personnel. This is why combining our davit crane with the transfer basket was the obvious choice for Spider. The designs and technologies for both products have proven safe and reliable in offshore wind and the oil and gas industry respectively.” Damsgaard elaborates.

The Spider transfer-basket fits two persons and is a scaled down version of those used in the oil and gas industry, but with the same advantages such as being fully self-rightening and floating in the water.

And during the entire transfer, the personnel is sitting comfortably and protected as an alternative to relying on their personal safety harnesses.

Photo: Harbour test in Hvide Sande, Denmark The transfer basket has cameras in- and outside which are connected to the wireless remote control giving the crane operator on the vessel a good overview of the landing zone on the turbine platform as well as visual contact with the personnel being transferred. For an entire wind farm, only one set of transfer basket and remote control is needed.

After the personnel-transfer, Spider is simply operated with its wired remote control from the TP. Davit cranes play an important role transferring cargo such as tools and spare parts from the vessel to the TP and back. Sometimes already in the construction phase, but otherwise for the annual services and inspections of the equipment and installations including the turbines.

More info: info@seasight-davits.com | +45 22309900 | Seasight-davits.com |

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INDUSTRY FOCUS: WIND ENERGY

Hornsea Two turbines are 81 metres long and stand atop 200-metre-high towers. With a rotor diameter of 167 metres, these monster structures are almost unparalleled in their size.

“Each turbine has the capability of providing enough energy for 160,000 hour-long video conferences. The project will use the world’s largest offshore substation and will deliver the most affordable electricity from offshore wind to date,” adds Harnett.

Major strides have been made and, with the announcement of first power at the end of last year, the end is in sight for Ørsted on what has been a journey dating back to August 2016 when the UK Secretary of State granted the Development Consent Order.

“Once fully operational later this year, Hornsea Two will be the world’s largest operating offshore wind

farm, taking the title from its sibling project Hornsea One. Despite the challenges experienced over the last two years, we have adapted and been able to continue delivering on our construction milestones. By November 2021, 100 of our 165 8MW wind turbines were installed and we are still on track for completion in 2022.

We are currently busy with installation of the remaining turbines and continuing testing, commissioning, and energising our wind farm for completion,” states Harnett.

THE POWER OF WIND Beyond the lightbulbs and laptops being powered by Hornsea wind in 2.3 million UK households, the macroeconomic benefit behind the project is immense. A UK government must, the flow of money and

opportunity through a dedicated value chain has been fantastic. A company keen on localisation and leaving a legacy, Ørsted is delighted with the wider benefits that the project has created.

“As well as making a significant contribution towards the UK’s renewable energy targets through projects like Hornsea Two, Ørsted is also committed to investing in the Humber region and supporting education and job creation,” explains Harnett. “We have developed a skills plan to highlight employment and supply chain opportunities associated with the construction, operation and maintenance of offshore wind farm projects. We’ve also built the UK’s largest operations base for offshore wind in Grimsby, providing around 500 jobs – with around 80% of staff living

BUSS ENERGY: YOUR PARTNER IN WIND ENERGY LOGISTICS Starting in August 2020, over 15 months Eemshaven has served as base port for the handling and load out of 165 Monopiles and Transition Pieces for the wind park project of Orsted, Hornsea Two. Buss Energy Group was contracted for the base port logistics of the monopiles and transition pieces.

Buss Energy Group´s experienced team of project managers, stevedores and technicians provided a full scope of base port activities, including the handling of components of up to 1,230 tonnes per unit, provision of onshore storage solutions for Monopiles and Transition Pieces and provision of warehousing and office facilities. Furthermore, a custom designed Transition Piece Gantry Handler was used to enable a more efficient logistics and storage set up at Buss Terminal Eemshaven.

Buss Terminal Eemshaven is located at the north coast of the Netherlands and is close to various offshore wind farms in the North Sea. The terminal contains about 250,000 m² of storage area, has a 694 m long quay and can handle a capacity of up to 35 tons/m² surface load. These

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figures combined with its prime location makes Buss Terminal Eemshaven the ideal marshalling port for handling heavy goods for offshore wind projects in the North Sea. The terminal has already served more than ten large-scale offshore projects and is looking forward to new ones.

Buss Energy Group is one of the leading service companies in the on- and offshore wind industry in Germany and Europe. The services of Buss Energy Group include maintenance and installation of wind turbines and rotor blades on land and at sea. In addition, the company offers the entire base port logistics for wind farms with the operation of port facilities. Furthermore, a team of internationally experienced project managers and QHSE experts ensure a comprehensive set of services.

Through specialized units, Buss Energy Group serves as reliable full-service provider in the installation of wind parks on- and offshore by providing individual project- and logistics planning, project management and interface management, as well as, the operational execution, handling and assembly with experienced riggers and technicians.

ØRSTED - HORNSEA TWO

within an hour’s drive from the facility.”

Known as the East Coast Hub, this site opened in 2019, and benefitted from a £10 million investment for its quayside and office facilities. In the most recent recruitment drive for the East Coast Hub, Ørsted received over 1400 applications for 23 new technician positions.

In August 2020, Ørsted launched its Thrive programme, a fully-immersive safety training scheme in Grimsby, where offshore operators can come to train on innovative VR tech. A pioneering project, Thrive is being made available to all offshore companies and the wider region to ensure the industry impact of Hornsea Two. The project represents a £1.4 million investment and has created 60 jobs in the area, which Harnett describes as the ‘fulcrum of green energy’.

“More widely” he expands, “we partner with the Natural History Museum to support curated days of activities for schools that might not otherwise have this opportunity, helping to encourage interest in Science, Technology, Engineering and Maths (STEM) subjects. We also have a partnership with Teach First to address educational inequalities in the North East and a long term collaboration programme with Masters and PhD students enrolled in the Durham Energy Institute (DEI) at Durham University on projects and research that have positively impacted the renewable energy industry.”

Clearly, the company values its UK business and realises the opportunities that remain in the UK market when it comes to shifting to alternative energy generating

resources. One of the world’s most advanced in terms of progress with wind energy – at the start of the year, the UK had around 104 GW of offshore installed capacity – the country still has a lot to offer but much more work to do.

“The UK continues to be our largest market and offshore wind is set to play a key role in the journey to Net Zero. As of 2021, Ørsted has invested over £14 billion into UK offshore wind – our immediate focus is on our Hornsea Three and Hornsea Four projects,” details Harnett. “Assuming these wind farms are consented and commissioned at the planned scale, we expect to invest an additional a similar amount again during the next decade. Together the four Hornsea Continues on page 16

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AFTER COMPLETION OF THE HIGHLY TECHNICAL AND IMMENSELY CHALLENGING HORNSEA 2 PROJECT, WINDHOIST IS PREPARING FOR ANOTHER BUSY YEAR AS NEW PROJECTS COME THICK AND FAST. ENERGY FOCUS EXPLORES HOW THIS ESTABLISHED GLOBAL PLAYER IS WINNING IN WORLD WIND INDUSTRY.

© Liam Havlin - Hornsea 2

HARNESSING WORLDWIDE OFFSHORE WIND BOOM

World-leading turbine installer, Windhoist, is celebrating following major success on the Hornsea Two project in the UK North Sea. As the world’s largest offshore wind farm, built in harsh conditions, during a global pandemic and economic crisis, the 1.3 GW wind farm will power more than 1.3 million homes. For all involved, completion of this project is a considerable achievement and shows what is possible when imagination, innovation, and ambition come together.

Established in 2005 and now recognised globally as a leader in wind turbine crane, installation, mechanical and electrical services, maintenance and servicing, and de-commissioning, Windhoist has become the partner of choice for project owners and turbine manufacturers.

Enjoying relationships with Siemens Gamesa Renewable Energy (SGRE), Vestas, Nordex, GE, Samsung, Enercon, and more, Windhoist makes the seemingly impossible a reality and has the stats to prove it.

With more than 7000 turbines installed, across 22 countries, utilising some of the most powerful heavy lift cranes available, the company has successfully added 20GW of natural wind energy to grids around the world.

MD Euan Fenelon details Windhoist’s task on this critical project. “Following successful execution of Beatrice and Hornsea One pre-assembly, Windhoist were awarded the contract for the pre-assembly of the 165 Siemens 8MW 167-DD 8.0, 66KV Wind Turbines on Hornsea Two.

© Adam Ludlam - Hornsea 2 Vessal Loaded “Hornsea Two operated a 2-berth process, meaning two ships rotating out of the port to facilitate construction of the windfarm within 2021 calendar. This doubled the complexity of the project with two main installation cranes and at a time when the world was in the midst of the covid pandemic and labour shortages, however Windhoist delivered on time and to budget,” advised Fenelon.

The company had to prep and build towers with its own cranes and labour, clean and paint, snag and rectify and review and handover to the client before preparing for transfer to the offshore vessel. These pre-assembly activities are highly specialised and require the input of a skilled and experienced workforce. Thankfully, Windhoist has a long working relationship with SGRE dating back to 2003, when they completed the first onshore project at Altahullion wind farm in Northern Ireland.

Hornsea Two, an altogether different proposition, required Windhoist to unleash its most powerful capabilities to elevate nacelles each weighing hundreds of tons, and colossal steel towers, which will eventually rise to a combined total of 200m above the horizon. The company’s LR1750 Liebherr crawler crane and crew worked across the lifecycle of the project and bought in a support crane when extra capacity was required.

“Since 2003,” says Fenelon “we have worked with Siemens and subsequently SGRE on 106 projects and built and installed 2145 turbines which have generated 7,740.8 MW of clean, green energy. Since the start of the renewable wind industry, Windhoist has enjoyed positive relationships with Gamesa and Senvion who joined forces with Siemens in 2017 and 2020 respectively. The combined total output of the three relationships has resulted in a total project count of 262, total wind turbine build of 3,442, and a total energy capacity of 10.5 GWh.” The historic success of Windhoist combined with an exceptional health and safety record – driven by a

comprehensive training and development division – is helping the company to nurture a strong pipeline of future work, delivering best-in-class in the wind energy industry worldwide.

“Alongside Hornsea Two, 2021 saw a continued strong order intake for our combined crane and install services with over 250 technicians and 12 cranes deployed across 14 projects,” states Fenelon.

“Windhoist is increasingly recognised as the provider of choice for turbine erection in extreme conditions, with one of our current projects seeing our teams successfully erecting SGRE turbines 500km inside the Arctic Circle he most northern tip of Norway,” he adds.

In 2021, the company also successfully completed the second-largest onshore wind farm in Sweden and one of Europe’s largest – the Nysäter Wind Farm. Windhoist is prepping packages for vital work on major projects including Kennoxhead, Scotland; Raggovidda, Norway; and Kontissuo and Korkeakangas, Finland.

“As per the 2021 season, 2022 is looking like it will be another busy year and our bids and tenders team are busy tendering for additional projects across 2022 and into 2023,” confirms Fenelon.

The company’s global presence continues to grow in 2022, with teams deployed as far away as Taiwan as the world realises the potential of wind energy. Windhoist’s Crane and Install concept allows for service to customers globally while maintaining the highest levels of quality.

“Our aim is to continue delivering our best-in-class turnkey services and high performing record in health, safety, and quality, which is vitally important to our clients and the final operator of the windfarm. As the focus has moved to renewable energy and professionalism has entered the supply chain, safety and quality have become paramount as well as delivering a cost-effective added value service,” declares Fenelon.

“We have created jobs, improved the world’s renewable infrastructure, increased access to green energy, and provided vital services which make our planet a more environmentally friendly place.”

While Windhoist’s daily work is highly complex – many different resources (plant and people) and time driven – it’s offering to clients is simple. The company brings unrivalled experience and knowledge and, ultimately, peace of mind for OEM’s, project owners, industry bodies, and all stakeholders.

As a growing organisation, Windhoist will continue to improve and develop, and this is welcome news in such a burgeoning global industry sector.

“As a strategic partner to our clients, we reduce risk, increase up-time and efficiency, and simplify ownership and operation of wind farms on and offshore,” concludes Fenelon.

Visit www.windhoist.co.uk.

INDUSTRY FOCUS: WIND ENERGY

Continued from page 13 projects will deliver more than 7GW of clean, renewable electricity, helping the UK’s effort to generate enough power to meet its 2030 climate goals.”

In 2021, UK Prime Minister Boris Johnson announced that the country would achieve net zero emission by 2050 through a strategic plan that would remove fossil fuels from the country’s core energy mix and create a new industry in green energy, with exciting new jobs and major investment. Ørsted is ready to assist.

“Aside from Hornsea Three and Hornsea Four, which is currently going through the planning process, in January 2021, we won a joint bid with Falck Renewables and BlueFloat Energy Consortium to start developing a 1GW new floating offshore wind site off the north-east coast of Scotland. The project will be located off Caithness, around 50

Hornsea 2 - Loaded Boat

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km east of Wick and is Ørsted’s first large-scale floating wind development project anywhere in the world, as well as expanding Ørsted’s footprint from onshore wind to offshore wind in Scotland. We’re also moving forward in a number of global markets, including the US and Taiwan,” Harnett says.

HEALTHY PLANET? In 2021, Bernstein Research released a report covering a long-discussed topic around how green and efficient wind farms actually are. Steel production, mining of metals for production of components, logistical emissions, sea pollution, damage to the natural

ØRSTED - HORNSEA TWO

environment, disturbing of animal habitat – the value chain has been questioned. But clear statistics demonstrate the effectiveness of wind farms. With much of the carbon footprint coming from the manufacture of towers, creation of concrete foundations, and building of fibreglass blades, the carbon cost has to be amortized over the decades of successful operation of the equipment. Ultimately, the research showed wind power to have a carbon footprint 99% lower than coal-fired power plants, 98% less than natural gas, and 75% less than solar power.

According to Deepa Venkateswaran of Bernstein Research, “wind turbines average just 11 grams of CO2 emission per kilowatthour of electricity generated. That compares with 44 g/ kwh for solar, 450 g for natural gas, and 1000 g for coal.”

Importantly, wind turbines do not release emissions that can pollute the air or water and they do not require water for cooling. There remains some concern over the impact on aquatic, bird, and bat life, but researchers are busy building plans to minimise any effect.

“As a company that’s committed to building a clean, sustainable future for us all, it’s imperative that we

// A COMPLEX CONSTRUCTION OF THIS SIZE AND LOCATION IS A TRUE TEAM EFFORT. WE OWE ITS SUCCESS TO EVERYONE THAT WORKED SO HARD THROUGHOUT THE PANDEMIC TO MAKE IT A REALITY //

MHO Apollo & MHO Asgard Hybrid CTVs designed to service the offshore wind industry with safe, reliable and green crew transfer.

Learn more about our fleet and services www.mho-co.dk

MHO - Co All vessels are operated according to our ISM ISO 9001 ISO 14001

Morsøgade 4, · DK-6700 Esbjerg info@mho-co.dk · Tel: +45 53 70 46 45

listen to our moral compass when it comes to constructing and operating offshore wind farms,” explains Harnett on Ørsted’s approach to planning the major projects. “We make every effort throughout the planning process to ensure we minimise our impact on the environment and other sea users, and we’re keen to continue making improvements to the way we work as our projects progress.

“For example, we’ve worked with academics at Oxford University and other institutions to reduce the amount of steel we use, while maintaining the longevity and structural integrity in the foundations of our offshore wind sites.

Additionally, regarding maintenance, we have changed our approach to projects located far from the shore.

Sending sailing ships out every day

is inefficient when you’re travelling a long distance. So now we keep a custom designed vessel on site for two weeks at a time. Finding the space for renewable energy is vital to prevent catastrophic damage to our oceans, protect biodiversity and ensure the future health of our planet.” Ørsted is a renewable energy company that takes tangible action to create a world that runs entirely on green energy. Hornsea Two is clear evidence of how this business lives its values. The benefits are obvious and the implementation is now proven.

Prepare for more from Ørsted and more from wind power – the world’s next booming energy industry.

WWW.HORNSEAPROJECTS.CO.UK

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BALTIC EAGLE OFFSHORE WIND FARM

Baltic Sea Megaproject

Propels the Clean Energy Transition PRODUCTION: Timothy Reeder

Inaugurating the Wikinger offshore wind farm in October 2018, Iberdrola blew us away with its entry into the German offshore wind market. Baltic Eagle harnesses more of this awesome power as the second of Iberdrola’s planned trio of plants to form the largest offshore wind complex in the Baltic Sea, driving the shift to a sustainable, low-carbon economy.

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INDUSTRY FOCUS: WIND ENERGY

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The Baltic Sea is renowned for the incredible potential it holds for offshore wind in Europe, and by 2050 it is forecast to host as much as 93 GW, up from the 2.2 GW we see today. In addition to providing clean and cheap electricity to countries around the Baltic Sea, offshore wind will help to support the economic recovery of wider Central and Eastern Europe to ensure longterm growth and security, with job creation spanning careers in turbine manufacturing, electricity generation and many other industries.

The Baltic Sea basin’s surrounding countries would all benefit from developing offshore wind, and in September 2020 eight Baltic countries including Poland, Germany, Denmark and Sweden signed a joint declaration to accelerate the build-out of new offshore wind in the region. The tantalising new opportunities for offshore wind developments are

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backed by the draw of competitive and clean energy, and increased local and international economic growth.

Offshore wind energy in turn boosts imports and exports, attracts international investments and enhances energy independence and security. With all this in mind, the offshore wind industry in the Baltic Sea is one of the most vitally important assets underpinning Europe’s transition to a renewable energy sector, and Germany thus becomes a key focus area for Iberdrola group over the coming years alongside its existing core markets of United States, United Kingdom, Mexico, Brazil and Spain BUILDING ON GERMAN OFFSHORE SUCCESS A world leader in renewable energy, Iberdrola is backed by more than 170 years of history shaping its status today as the global number one

// WE WILL CONTINUE TO CHAMPION OFFSHORE WIND TECHNOLOGY TO DRIVE THE ENERGY TRANSITION TO A SUSTAINABLE, LOW CARBON ECONOMY // producer of wind power, and one of the world’s biggest electricity utilities in terms of market capitalisation. “We have brought the energy transition forward two decades to combat climate change and provide a clean, reliable and smart business model.”

Iberdrola’s investments in renewable energy began more than two decades ago, to provide the foundation on which to build a

BALTIC EAGLE OFFSHORE WIND FARM

// IBERDROLA IS A WORLD LEADER IN RENEWABLE ENERGY AND ON THE CUTTING EDGE OF THE ENERGY TRANSITION TOWARDS A LOW-EMISSIONS ECONOMY // clean, reliable, smart business model.

“Thanks to this approach,” it confirms, “the company is currently a world leader in renewable energy and on the cutting edge of the energy transition towards a low-emissions economy.”

Renewable energy represents a massive, core element of Iberdrola’s landmark projects, all milestones for their size and innovation, with 17 of these plants currently in construction or development. It is wind generation with which Iberdrola has come to be synonymous, however, pioneering

the onshore art 20 years ago and today replicating these triumphs in the offshore wind market. “Offshore wind power is key to Iberdrola’s future growth and has become a major business growth vector for the company.”

Located 30 kilometres to the northeast of Rügen island, off the coast of Germany’s Pomerania, lies Iberdrola’s new 476 MW installation and its second foray into the Baltic.

Due for commissioning before the close of 2024, Baltic Eagle will be

made up of 50 wind turbines of 9.53 MW of unit power on monopiles.

The resultant annual renewable energy production of 1.9 TWh will be sufficient to meet the needs of 475,000 homes and avoid the emission of almost one million tonnes of CO2 into the atmosphere every year.

Xabier Viteri Solaun is Director of the Renewable Energy Business of the Iberdrola group, and underlined how Baltic Eagle, “confirms the company’s firm commitment to technological innovation, the development of large renewable projects, the reduction of emissions to combat climate change and the increased economic and social contribution in the territories where it is present.”

“This project will create highquality jobs along the entire value chain of the offshore wind sector,”

Smulders offers a full range of services from engineering and fabrication to the complete turnkey solutions of foundations and substations for offshore wind farms. Smulders and EQUANS are in charge of the design, engineering, construction, and commissioning of the Baltic Eagle offshore high voltage substation and its foundation, which are currently being fabricated in Hoboken and Vlissingen.

PASSIONATE ABOUT STEEL WWW.SMULDERS.COM

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INDUSTRY FOCUS: WIND ENERGY

Iberdrola states, “which has significant potential for growth, while helping to re-industrialise and modernise shipyards all over the continent.”

Awarded the project in April 2018 in a second offshore tender launched by the Federal Networks Agency - Bundesnetzagentur - Iberdrola has finalised the geotechnical and geophysical survey which commenced in September 2018, paving the way for the construction and commissioning of this renewable plant and now thoughts can turn to acquiring and progressing its complex array of main components.

EXPANDING BALTIC HUB To achieve this monumental next step in its quest for a cleaner energy future, a litany of industry leaders have been appointed to supply the pioneering equipment and installations required in an undertaking of this size and scope. Baltic Eagle’s foundations will come courtesy of a combination of EEW Special Pipe Constructions (SPC) and Windar, the former contributing 50 monopile foundations with diameters of between 8.75 metres and nine metres and the latter the accompanying transition pieces, forming the plant’s bedrock.

MHI Vestas Offshore Wind, meanwhile, will be the official supplier of the MVOW V174 wind turbines, which incorporate the industry’s largest commercially proven rotor size and most powerful output. The energy industry’s global partner on sustainable energy solutions, Vestas has built up more than 136 GW of wind turbines in 84 countries and installed more wind power than anyone else across the globe.

A 174-m rotor blade diameter with a swept area of 23,778 m2 and a hub elevation of 107 m above sea level mean that this is the largest project Vestas has installed to date offshore in Germany. “We are delighted to be establishing our partnership with Iberdrola at the Baltic Eagle project in

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BALTIC EAGLE OFFSHORE WIND FARM

Germany, delivering our proven V174 platform,” said Nils de Baar, President of Vestas Northern & Central Europe.

“We are pleased to be advancing Germany’s clean energy and offshore wind ambitions at Baltic Eagle.”

“Wikinger represents a new step in our commitment to supplying clean, efficient and reliable electricity. We will continue to champion offshore wind technology since it enables us to drive

the energy transition to a sustainable, low carbon economy,” Iberdrola Chairman, Ignacio Galán, outlined at its inauguration in 2018, and the addition of Baltic Eagle builds on the this in a massive way; it bolsters the existing power of Wikinger to offer a combined capacity of 826MW and comprise the heart of the Baltic Sea Hub. This will act as a centre for offshore and onshore service, and

provide local content for Iberdrola’s projects in the Germany and the Baltic coastal countries. The company also has another offshore installation currently in development in Germany Wikinger Süd - set to provide a further 10MW, and this trio of wind farms will bring into being the largest offshore wind complex in the Baltic Sea, with a total installed capacity of 836 MW and a joint investment of €2.5 billion.

“Baltic Eagle continues to progress on track, and we look forward to delivering another major project in the Baltic Sea,” Iris Stempfle, Iberdrola’s country manager in Germany, concluded. “Adding to the existing Wikinger project it will enable us to benefit from efficiencies going forward, through technical advancements across the entire value chain and the use of the excellent infrastructure in Sassnitz.”

WWW.IBERDROLA.COM

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Jacqueline Vaessen

NEXSTEP

Re-Using Existing Elements

Key to Energy Transition PRODUCTION: Timothy Reeder

Nexstep coordinates, facilitates, and accelerates the agenda for the re-use and decommissioning of the vast oil and gas infrastructure in the Netherlands, a large proportion of which is approaching the end of its economic life. At Nexstep a dedicated innovation agenda identifies new challenges and promotes technology development, while industry collaboration and knowledge sharing mean that existing elements are expertly reused to complement renewable investments.

//

The preparations for what would germinate and blossom into Nexstep, National Platform for Re-use & Decommissioning, began back in November 2016, following recommendations made in the Netherlands Masterplan established by Energie Beheer Nederland (EBN), the Netherlands Oil and Gas Exploration and Production Association (NOGEPA) and IRO. These represent the state, the oil and gas operators, and service industry respectively.

“A huge cloud of decommissioning liabilities was hanging over the industry and the government,” depicts outgoing-GM Jacqueline Vaessen. “There was a hive of activity and preparation taking place as a result, with a keen eye on reducing the looming decommissioning costs. These are estimated at some €7 billion,” she details of the sum calculated in 2017 and used as the base figure.

“The aim of Nexstep is to reduce those costs by 30%, to bring them down to €5 billion, whilst keeping the safety measures at the same highest level.

It is our ambition to stimulate re-use and collaboration in decommissioning of oil and gas infrastructure in the Netherlands,” Vaessen summarises.

COOPERATION AND KNOWLEDGE SHARING A large proportion of these installations will become available between 2022 and 2027, ramping up again in 2039 and 2040. “We see collaboration in decommissioning as a large contributor to reduce costs of decommissioning.

While Nexstep is not the owner of the infrastructure and can therefore not make tenders, we do bring parties together. We started developing a joint campaign of Mud Line Suspension wells, which are wells that were once drilled for exploration purposes, but never became producing wells. These wells are relatively easy to decommission as

they are not connected to a platform.

We are very proud to have announced the contract award for this campaign earlier this year. It is a world first that six operators jointly take up a decommissioning project, and within Nexstep we are now identifying new campaign opportunities,” says Vaessen.

A membership-based organisation, Nexstep is tiny in number with a staff complement of just three, but entirely idiosyncratic, as Vaessen details.

“We are unique as we are the only organisation in oil and gas technically composed of 100% female staff. We are, however, joined by 60-70 people from the operators, NOGEPA and EBN, working together to face this enormous challenge which drives us every day.

“Operators are typically being associated with exploration and production activities for oil and gas.

However, decommissioning of the assets following the production phase is also a natural part of the total life cycle and as such of the operators’ core

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INDUSTRY FOCUS: DECOMMISSIONING

business. Many operators have taken their responsibility to decommission as an independent and solo activity.

Now we are reaching the point where numerous platforms are about to be decommissioned, the time has come to look at things differently.

“We share learnings, drive innovation and promote effective and efficient regulation,” Vaessen summates, “all with the clear ambition to contribute to the energy transition.”

Vaessen then explains that the removal and re-use of onshore and offshore infrastructure will be more sustainable and efficient by making use of the broadest collection of knowledge and experience available.

“As a result,” Vaessen goes on, “we have a dedicated Shared Learnings team working hard to create a comprehensive database of learnings for the benefit of all members. Today, this resource contains over 350 novel, collaborative learning artefacts, providing insight into a wealth of areas and integral to achieving cost reductions and attaining the road to 30% agenda.”

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INNOVATION ON THE AGENDA There is an unmistakable growing international consensus that hydrogen will be urgently required at scale, in order for countries to meet the climate targets as set out in the Paris Agreement. It offers a solution to lower emissions in many traditionally environmentally impactful sectors, such as steel and heavy-duty transport, and can provide plentiful long-term energy storage. With 196 parties bound following COP 21 in 2015 to avoid dangerous climate change by limiting global warming to well below 2°C, and pursuing efforts to limit it to 1.5°C, hydrogen is proven to improve air quality and strengthen energy security.

“We believe that hydrogen is vital to the energy transition,” Vaessen agrees, and the decline of hydrocarbon production means that a proportion of the extensive existing oil and gas infrastructure will become available to be deployed in other uses. “Together with TNO, the Netherlands Organisation for applied scientific research, and representatives of the industry, we

initiated a pilot project to establish the world’s first offshore green hydrogen production plant on an operational platform. In 2018, we began looking into the feasibility of such an initiative, as a number of our platforms are fully electrified and connected to the gas grid. We organised the project with four operators and TNO, compiled a list of the competences and specifications required and then chose one of the five platforms presented to us.”

From these contenders, it was Neptune Energy’s Q13a-A platform that emerged as the clear victor, already fully electrified using green electricity.

// IT IS OUR AMBITION TO STIMULATE RE-USE AND COLLABORATION IN DECOMMISSIONING OF OIL AND GAS INFRASTRUCTURE IN THE NETHERLANDS //

NEXSTEP

Testament to the importance of the project was the Netherlands Enterprise Agency’s (RVO) awarding a subsidy of €3.6 million to PosHYdon, the world’s first offshore green hydrogen pilot on a working platform. “The aim of the pilot is to gain experience of integrating working energy systems at sea,” Vaessen tells us, “and the production of hydrogen in an offshore environment.”

In receipt in 2019 of an Innovation Excellence Award from the Oil and Gas Council during the World Energy Capital Assembly, the pilot integrates offshore wind, offshore gas and offshore green hydrogen in the North Sea. The PosHYdon project was officially launched last summer, now managed

by Neptune Energy with Nexstep as one of the 14 partners in the consortium. “At Nexstep we have a specific and devoted

innovation agenda, to identify new challenges and promote technology development where it is needed,” Vaessen concludes, “and PosHYdon was a big aspect of this overall objective.”

While the search for further appropriate pilot locations for re-use continues around the world, Vaessen has remarked a definite shift in attitudes in her time with Nexstep and decommissioning is now no longer the not so sexy word it once may have been. “When I started in 2018 decommissioning was not a fashionable subject in the least,” she admits. “Along the way, however, I have noticed a real change and there is much more publicity and focus now on successful decommissioning projects.

“Decommissioning is for our sector a natural, and integral, part of

the lifecycle of oil and gas, but only for a couple of years have people recognised its importance. The energy transition is imminent, which gives us an abundance of opportunities to re-use existing elements which complement renewable investments,” Vaessen finishes. “Decommissioning activities will only increase over the next decade, and Nexstep will continue to act as a driving force in connecting all opportunities and players to reduce the costs of decommissioning the oil & gas infrastructure in the Netherlands by 30%.”

WWW.NEXSTEP.NL

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NWF FUELS

Going the Extra

Green Mile PRODUCTION: Timothy Reeder

Part of the larger, LSE-listed agricultural and distribution specialist NWF Group, NWF Fuels has notched up more than 60 years’ service supplying liquid fuels to homes, farms and industry. In good shape despite the pandemic, with operations able to progress strongly, NWF Fuels reverts in earnest to its bid to further increase market share in a highly fragmented industry, with green considerations front and centre. www.energy-focus.net / 29

INDUSTRY FOCUS: FUEL SUPPLY

//

Founded in 1871 as a farming cooperative to deliver feed and grain, NWF added fuel to its repertoire in 1950 when ploughs began to be pulled by tractors, and oil heating swiftly started to replace coal in homes. “Today NWF Fuels represents a dedicated fuels and lubricant business, boasting a modern fleet of over 155 vehicles and 26 fuel depots strategically covering a large footprint across England and Wales,” outlines MD Richard Huxley, of the business now staffed by around 340 employees.

“This means that we are now placed among the top three largest liquid fuels and lubricants businesses in the UK, with our infrastructure allowing us to serve in excess of

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// NWF FUELS IS SUPPORTING INNOVATION AND WORKING CLOSELY WITH FUEL PRODUCERS TO DEVELOP THE NEXT GENERATION OF FUELS // 150,000 domestic, agricultural, commercial and retail customers and supply them with a comprehensive range of fuel, lubricants and AdBlue no matter their setting or situation.”

Of that broad customer base, tirelessly served six or even seven days per week, Huxley explains, around two thirds are domestic and the remainder commercial and agricultural. “We serve a diverse mix of customers on these two sides, but the biggest part of our business is selling home

heating oil to people who are off-grid, and instead use kerosene or oil to fire their boilers.” This oil is bought in from all the UK’s foremost fuel majors, and the main refineries and terminals in the country.

INTEGRATING ACQUISITIONS “From small beginnings we now have a turnover in excess of £350 million, are major authorised distributors for Texaco (Valero) and Jet (P66), and are preferred distributors of fuel for Essar,

NWF FUELS

Total and Esso,” Huxley details of a truly stratospheric rise. From a distribution, rather than fuel, background himself, Huxley’s own arrival at NWF some three and a half years ago was inspired by an overarching strategy on the part of the Group to make a concerted effort to grow the fuels side of the existing

// WE RECOGNISE THAT THERE IS A MAJOR OPPORTUNITY IN THE UK FOR CONSOLIDATION OF THE INDUSTRY //

business, partly organically but also through acquisition.

“Throughout NWF, there is the recognition that there is a major opportunity in the UK for consolidation of the industry,” Huxley tells us, delineating exactly how the composition of the market spells enormous potential for NWF Fuels.

“While we’re in third position, behind Certas and Watson Fuels, the top 10 distributors occupy less than 25% of the market. The rest is shared between hundreds of smaller, local, privately-owned businesses, and our strategy centres around opportunities to grow our geographic footprint through acquiring some of these very good, smaller distribution businesses.”

Prior to the pandemic, this was being very aggressively and successfully pursued, Huxley reveals.

“We had acquired five fuel businesses within an 18-month period. When Covid hit, we were forced to place this on the back burner somewhat, but we are now safely back again to driving this side of the strategy and pushing it even harder as we move forward.

“I would anticipate that we will add a number of similar fuel businesses to our portfolio in the very near future.”

The pandemic presented NWF Fuels with something of a ‘perfect storm’ as Huxley puts it, its advent coinciding with a countrywide mad rush to buy fuel amid dramatically lowered prices. This combined with

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INDUSTRY FOCUS: FUEL SUPPLY

a sudden shift to home working, pushing domestic demand through the roof as people sought to ensure that their central heating systems were sufficiently stocked and fuelled.

“There were also more generalised concerns over the distribution networks in the UK,” he outlines, “and as a result, commercial customers sought to ensure that they too were well-stocked. There was a real boom in

// THE PANDEMIC DEMONSTRATED HOW RESILIENT AND CHANGE-AGILE OUR PEOPLE ARE IN A TIME OF DIRE NEED //

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the market just as we were needing to restructure and re-organise.”

All aspects of the business required dynamic and rapid thinking from NWF Fuels, to attend to the myriad challenges which each facet attracted. “We had to create environments whereby everybody was safe, apart and as separated as possible. All of a sudden the whole game changed dramatically, and testament to our committee was our keeping any of the drastic impacts of Covid to an absolute minimum and these protocols were integral.

“It also demonstrated how resilient and change-agile our people are in a time of dire need,” Huxley adds, insightfully. “We were lucky on the business side that heightened domestic demand insulated us significantly and kept us in good

shape, allowing us to continue to operate and drive progress and growth throughout the whole period.”

LIQUID FUEL ALTERNATIVES A cold winter, increased home working and operating in large and robust markets led to margins much stronger than anticipated, to more than offset any lower commercial activity from the impact of Covid-19. With fuel having been key to driving change and innovation globally since the industrial revolution, today this is borne out in the development of sustainable and environmentally friendly replacements.

“One of the biggest challenges that we have is that we sell fossil fuels,” Huxley concedes, “but NWF Fuels is supporting innovation and working closely with fuel producers to develop the next generation of fuels.

NWF FUELS

“Some of our most decisive work has been on researching alternatives to liquid fuel for the home heating market. We have been involved with UKIFDA in helping drive pilots to find low-carbon alternatives to the kerosene currently in use in boilers, and we hope that the wealth of information we have subsequently been able to provide to the government will in turn make us

// I WOULD ANTICIPATE THAT WE WILL ADD A NUMBER OF FUEL BUSINESSES TO OUR PORTFOLIO IN THE VERY NEAR FUTURE //

part of their own plans in migrating oil-fired boilers into a more carbon neutral environment.

“Obviously we are not the producers of the fuels themselves,” Huxley reiterates, “so it is crucial that we work intimately with suppliers on the commercial side to push for more renewable liquid fuels, and help firms reduce their carbon footprint as we transition away from fossil fuels over time.”

Among the most enticing of these has been the discovery of Hydrogenated Vegetable Oil (HVO), which some newer boilers have the capability to burn with no modifications. Ideally suited to a vast range of industries as a viable alternative to diesel, it has found applications to date in construction, rail, events and public transport.

“The order of the day as we emerge from Covid is to reignite

our growth strategy, and simply to pick back up where we left off prepandemic with the acquisitor pathway,” Huxley answers when questioned on NWF Fuels’s imminent priorities.

“There are still significant opportunities to consolidate the fuels market, and the business is continuing to build its pipeline and assess potential targets across the country.

We also believe there are opportunities to leverage benefits from the breadth of our growing network. As such we continue to invest in enhancing systems and capabilities, which we believe will improve efficiencies and provide a strong platform for continued growth.”

WWW.NWFFUELS.CO.UK

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AGILYX Technology, Expertise, and Purpose

Fuels Plastic Change PRODUCTION: Timothy Reeder

Agilyx delivers technology-based solutions at their best, redirecting hard-to-recycle plastics from waste streams and converting them into valuable, low-carbon products.

Targeting a truly sustainable, circular pathway, Agilyx has long been known for the innovation and technology to unlock the potential of so much otherwise unusable plastic; now it partners with Virgin in developing lower-carbon fuel facilities as netzero ambitions intensify.

//

It would be impossible to argue that plastic waste is an immense global challenge, one of the biggest and most urgent of our time with only 10% of post-use plastic recycled today. The rest, by virtue of its chemical complexity, contamination, and an infrastructure built for a different economy, is destined to end its serviceable life in landfills, incinerators or even as a part of the surrounding environment.

“This must change,” Agilyx CEO Tim Stedman stresses, “and this is really the fundamental premise of what Agilyx sets out to achieve in dealing with the issue of plastic waste - taking it and re-using it in its highest possible value application. Agilyx’s focus is on how to capture that elusive 90% of plastic not currently recycled and, alongside our partners, transform it.

“We provide a unique, integrated solution to the burning issue of plastic waste.”

Agilyx’s formation came more than 10 years before the interlinked,

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global UN Sustainable Development Goals were published. “We were founded to help solve the pressing issue of plastic waste,” Stedman details of a revolutionary introduction, “and have since launched commercial-scale plastic-to-plastic recycling technology and reimagined business models to accelerate global change.”

TECHNOLOGY-BASED SOLUTIONS “The reality is that plastics are incredibly valuable when used in the right way, for the right purpose and then dealt with correctly,” Stedman summarises. “These are precious molecules and should be thought of as such, and a finite resource; rather than throwing any away we should be capturing each one and re-using it in the most valuable way imaginable.”

Stedman describes plastic as, “an above-ground hydrocarbon,” in that it is drilled for, brought above the surface and turned into plastic, only for humanity to then use it and summarily discard it. “We believe the time has

come to expand advanced recycling,” he says, as a result, “and to give post-use plastic a new, circular life by converting this valuable material back into its original building blocks for reuse.

“By enabling plastic circularity on a global and commercial scale, we aim to play a vital role in accelerating the shift to a low-carbon economy.” This idea of creating sustainable, circular pathways for waste is one of Agilyx’s founding principles, using innovation and knowhow to allow post-use plastic to be used and recycled again and again. “A step change is needed to shift from a linear to circular economy,” Stedman advocates.

“As plastic produced from waste plastic is estimated to have roughly half the carbon footprint of plastic made with fossil-fuel sources, advanced recycling also supports the low-carbon energy transition needed to tackle climate change and global warming.”

Agilyx is constantly redefining what is possible, redirecting evergreater amounts of hard-to-recycle plastics from waste streams and

INDUSTRY FOCUS: RECYCLING

converting them into valuable, low-carbon products. At its core, explains Stedman, is a much-vaunted, pioneering, employment of technology and innovation, which has entailed investments of upward of $150 million to date. “Our mission is to use innovative technology for good and help solve the problem of plastic waste,” he explains. “We provide the technology to take some of the most difficult waste and still see it turned into useable products.

“This can in a lot of instances mean reverting straight back to plastic, where we can use our technology, and our partners’ expertise, to go from very distressed waste back to food- and pharmaceutical-grade products. With thoughts of transition at the forefront, though,” Stedman goes on, “it can also be about identifying waste, especially that which is so distressed as to not really have a home or use anywhere else, and using it as a low-carbon fuel.”

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LOW-CARBON FUEL PARTNERSHIP In a monumental bid to address not only plastic pollution but the global transition to net-zero as whole, Agilyx has announced that it is to collaborate with Virgin Group in a strategic partnership to research and develop lower-carbon fuel facilities. The aim is to

reuse plastic waste to produce synthetic crude oil that will then be refined into a lower carbon fuel, to broaden options in the market from the limited range available today.

This is not Agilyx’s first foray into energy, Stedman clarifies, rather it is re-entering an industry where it spent

AGILYX

// AGILYX’S FOCUS IS ON HOW TO CAPTURE THAT ELUSIVE 90% OF PLASTIC NOT CURRENTLY RECYCLED AND TRANSFORM IT // some of its formative years. “We have a track record of producing synthetic crude oil, but we realised after some years that this same technology could be used in a much more precise way to fully utilise its capabilities. Rather than the ‘sledgehammer approach’ to take it back to a crude oil, we saw that could in fact separate out types of plastic and take them directly back to their raw material.”

With this technology built and enabling different offerings for each type of plastic, delivering the true circularity that Agilyx is constantly striving to attain, Stedman explains that of late it has attracted much attention from other players, seeking to use the technology to support their transition to low-carbon. Now, in another significant development for the transition to future fuels, the Virgin Group calls upon Agilyx’s conversion technology to help

achieve its ambitions of decarbonising aviation by relying on ever-increasing shares of low-carbon fuels by 2050.

“What both of us recognise is the craziness of the amount of wasted hydrocarbon in the world,” Stedman says of the genesis of this partnership, “and Virgin is equally passionate about correcting that as the drive towards net-zero. Initially, there is the beneficial opportunity to take this wasted plastic and capture it as a low-carbon fuel; what excites both us and Virgin, meanwhile, is that as the broader industry develops and capability increases our technology can be utilised to supplement other sources of sustainable fuel, not only from an aviation perspective but also in marine applications through Virgin’s massive cruise subsidiaries.

“This platform is unique as it will be used for lower carbon fuels, but also has

the future opportunity to be integral in the production of circular plastics.”

The first waste-to-fuel location is planned to be in the US as Virgin works with Agilyx on the development of the production facilities based on its unique conversion technology, with the intention of rolling-out similar plants in other countries including the UK. Cyclyx, an innovative feedstock company that is majority owned by Agilyx, will source the plastic waste used for the fuel in the first facility.

“The scale of the challenge is enormous,” Stedman admits, “and our ambition is not just to serve subsidiary businesses, but the broader market so the opportunity is huge. We are taking a critical first step by embarking upon this project, capturing a resource that would otherwise be wasted and positioning ourselves for this crucial transition.”

WWW.AGILYX.COM

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OANDO

Proud Heritage Supports All-Conquering Aspirations PRODUCTION: William Denstone

Uniquely positioned to take advantage of Nigeria’s vast natural resources, Oando is among Africa’s largest integrated energy solutions providers and a leading indigenous player in exploration and production. Having propelled itself to the forefront of the country’s upstream sector in record time, Oando is now leading the way in cleaner, greener developments, with a dedicated subsidiary exploring a portfolio expansion strategy into renewable energy.

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Ebocha oil Field

INDUSTRY FOCUS: INTEGRATED ENERGY

//

Driven by a vision to be the leading indigenous energy solutions provider on the African continent, Oando is making swift and sustained progress to position itself as a major player in both Nigeria and the continent as a whole.

Chief Compliance Officer Ayotola Jagun takes us through Oando’s rapid rise to becoming one of Nigeria’s top outfits, specifically in the country’s upstream oil and gas sector.

“An independent oil and gas company with world-class operations, and the foremost energy company in Nigeria, Oando began life as UniPetrol, a Governmentowned, downstream business,” she describes. “One of our more recent and immediate priorities was to move from being regarded as a predominantly downstream company to an upstream business, involved in exploration and production, which we have achieved in just 10 years.”

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MAJOR UPSTREAM PLAYER Now with a robust portfolio of oil and gas fields, the company has focused its strategy on increasing reserves, acquiring new assets, and enhancing production. “We are now at the cutting edge of Africa’s upstream sector,” Jagun confirms, “with significant investments in a robust portfolio of oil and gas fields, as well as participating interests in onshore and offshore producing assets.

“Our extensive upstream portfolio covers oil and gas assets predominantly situated on- and offshore in Nigeria, but also with interest and assets acquired recently in the Exclusive Economic Zone (EEZ) of São Tomé and Príncipe.

Through our extensive local operating capabilities, we have partnerships with both indigenous and international oil companies, and hold interests in 14 licenses for the exploration, development and production of oil and gas assets located across onshore, swamp and offshore.

// ANY ENERGY COMPANY HAS TO REALISE THAT WE ARE LIVING ON BORROWED TIME // “We have a very active trading division, too, and the crude oil that we produce and are then able to sell in turn allows us to bring in refined petroleum across a large part of Africa. We are active in Ghana, Nigeria, Namibia, Botswana and South Africa and are currently undertaking a lot of exploration work in these territories not in the sense of production, but in terms of markets.

“Our strategy is to continually grow our reserves through the development of our existing portfolio, and the acquisition of new assets through an ambitious expansion strategy.”

Demand-driven, reliable, efficient, and value-oriented, Oando Trading DMCC (OTD) deals in crude oil and petroleum products ranging from Naphtha, Gasoline, Fuel Oil, Gas Oil, Kerosene, and Bitumen.

To date, Oando Trading has exported over 57 million barrels of crude oil and in excess of three million metric tonnes of refined products. “Through this experienced, international commodities supply and trading company, we offer a wide range of value-added services, ensuring customer satisfaction at every level of the supply chain,” comments Jagun.

As one of Africa’s first companies to have a cross-border inward listing on the Johannesburg Stock Exchange, Oando has emerged as a leading exploration and production company in Nigeria and a major African player.

“We are the leading energy company in Nigeria, but we have also always had a growth plan that is pan-African,” Jagun explains, “and our goal continued growth as an upstream company.

“We are of course acutely aware of the global context, however, and as a result have pushed hard locally for sustainability.”

INDUSTRY FOCUS: INTEGRATED ENERGY

SUSTAINABILITY IN ALL SPHERES One way in which sustainability is exemplified at Oando is through an active commitment to contributing to the socio-economic development of the communities in which it operates, in part by ensuring that these operations are safe, environmentally friendly, and socially responsible. “One of the main things we focus on with our CSR is education,” Jagun divulges, “because we see it as integral in shifting people out of poverty. We have a foundation that is focused on primary school education and takes a holistic approach to bridging the gap that currently exists in the Nigerian education system, as unfortunately Nigeria has the highest number of out-of-school children at 10.5 million. Already, though, in a very

// WE ARE THE LEADING ENERGY COMPANY IN NIGERIA, BUT WE HAVE ALSO ALWAYS HAD A GROWTH PLAN THAT IS PAN-AFRICAN //

short period of time we have amongst other achievements been able to adopt 88 schools nationwide, enrolled over 60,000 out-of-school children to return to mainstream education in the communities where we operate, with a cumulative retention rate of 77%.”

At Oando, the belief that community relations is critical to the success of business operations and to the nation’s economic prosperity is lodged in our DNA, according to Jagun. “As a company, this is who we are; we are very much community and grassroots-focussed and are seen as strong leaders in this area within the industry.”

The duo of Oando Energy Resources and Oando Trading has recently been joined by a third, critical arm, geared explicitly towards sustainability in arguably its most impactful form. “Oando Clean Energy Limited is a proudly indigenous renewable energy company, utilising clean sources to develop energy solutions for the continent’s unique challenges starting in our home country Nigeria,” Jagun says. “We are always asking ourselves how we can solve the problems the nation is facing and at the same time be forward-looking, and there is currently no better way to achieve this than on the clean energy front.

Ayotola with Amina J. Mohammed - Deputy Secretary-General of the United Nations at UNGC event

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OANDO

Ayotola at UN Global Compact Network event

// WE HAVE ALWAYS BEEN INVOLVED IN INNOVATING AND FINDING EASIER, MORE EFFICIENT WAYS OF OPERATING // “Any energy company has to realise that we are living on borrowed time,” is her stark warning. “We realise that we have an enormous part to play as a large company ourselves in aggressively pursuing solutions to optimise consumption, improve yields and ensure the efficient use of energy.

“We have a whole business strategy built on clean energy and have been focussing on this for some time.

We now want to build Africa’s largest integrated green energy company, to power Africa in a sustainable manner.”

Each of these ground-breaking developments and changes create greater synergies between herself

and the company, Jagun assesses.

“As a company we have always been involved in innovating and finding easier, more efficient ways of operating, and invested in how Nigerians can through collaboration move the economy forward.

“I think this is part of what makes me personally such a great fit for Oando: I have an adventurous spirit and take risks, I refuse to take no for an answer, and I have consistently demonstrated great resilience, all of which has been embodied and lived by the company in everything it does.”

The world’s active pursuit of deliberate paths toward the creation

of a more sustainable future has accelerated the need for oil and gas companies to explore a portfolio diversification strategy towards renewable energy, Jagun closes.

“As the world transitions from fossil fuels into more renewable sources of energy, we know that energy providers in the fossil fuel space must rapidly evolve to adapt to a new market reality or face disruption. It is against this backdrop that Oando has made its first foray into renewable energy, as the journey begins for the redefinition of the future of our business and our role in the achievement of a carbon neutral world.”

WWW.OANDOPLC.COM

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FORD SOUTH AFRICA

Global Auto Business Eyes

SA Opportunities PRODUCTION: Chris Wright

Ford remains one of the key international investors in South Africa. Its powerful local business is driving opportunities like no other in the country, and its products are revered as best-in-class. Upgrades at the Silverton Assembly Plant will see Ford manufacture world-class vehicles for local and export markets, much to the delight of the South African auto industry.

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INDUSTRY FOCUS: AUTOMOTIVE

//

South Africa’s government has promised to deliver massive foreign direct investment to drive employment opportunities, commercial activity, and ultimately GDP growth in a promising economy which has waned for almost a decade. President Ramaphosa was on the charm offensive in 2018, managing to drive huge increases in inflows and bring FDI to its highest level in five years. But, the subsequent years have thrown up unprecedented challenges and investment has slowed. In 2020, Ramaphosa urged African leaders to come together to attract investment to the continent as the African Continental Free Trade Area agreement came into play. And in 2021, he promised international investors that the country was committed to rooting out corruption while solving crippling power issues.

© Ford SA

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// RANGER IS ONE OF OUR HIGHEST VOLUME, MOST SUCCESSFUL GLOBAL VEHICLES. THIS INVESTMENT WILL EQUIP OUR TEAM WITH THE TOOLS AND FACILITIES TO DELIVER THE BEST FORD RANGER EVER, IN HIGHER NUMBERS AND WITH SUPERIOR QUALITY // Many companies listened, and big names including Microsoft, Johnson & Johnson, and Ford committed spend in South Africa.

Ford’s venture is an important coup for the country which boasts a thriving automotive industry that contributes a major GDP component.

The company announced in February 2021 that it would spend R15.8 billion upgrading its Silverton Assembly Plant in Tshwane. The goal of this investment is to boost production

capability and capacity, while creating new jobs. Excitement followed with this announcement marking the largest investment by Ford in its 99 years in South Africa – one of the largest investments in the history of the country’s auto industry. Highlighting the scale and importance of the investment, the Ford Silverton Assembly Plant said it would expect to generate revenues of more than 1.1% of South Africa’s GDP. The expansion allows for an extra 32,000 vehicles to roll off the

FORD SOUTH AFRICA

© GCIS: President Ramaphosa addressing the Ford Motor Company of Southern Africa’s investment ceremony.

//THIS IS A BOLD AND PIONEERING STEP THAT WILL TRANSFORM OUR BUSINESS, HELPING US MAKE AN IMPORTANT CONTRIBUTION TO REDUCE OUR IMPACT ON THE ENVIRONMENT // plant, and drives production of the all-new Ford Ranger and VW pickups.

From Tshwane, the Ford Ranger will head for 100 global markets and will also hit South African roads. 1200 direct new jobs will be created, along with 10,000 across the value chain and supplier network, including in companies like ElectroMechanica where innovation is plentiful.

SILVERTON UPGRADES “This investment will further modernise our South African operations, helping them to play an even more important role in the

turnaround and growth of our global automotive operations, as well as our strategic alliance with Volkswagen,” said Dianne Craig, President, Ford’s International Markets Group. “Ranger is one of our highest volume, most successful global vehicles. This investment will equip our team with the tools and facilities to deliver the best Ford Ranger ever, in higher numbers and with superior quality.”

At the Silverton Plant, a new body shop with the latest robotic technology and a new high-tech stamping plant have been installed onsite to allow for streamlining of the

integrated manufacturing process.

Thorough upgrades were also made to the box line, paint shop, and final assembly to improve vehicle flow within the plant. The container and vehicle yards were also expanded.

“The extensive upgrades and new state-of-the-art manufacturing technologies will drive efficiencies across our entire South Africa operation – from sequenced delivery of parts direct to the assembly line, to increased vehicle production line speeds and precision of assembly to ensure the world-class quality that our customers expect,” said Andrea Cavallaro, director of Operations, Ford’s International Markets Group.

This investment is furthered by ongoing upgrades and enhancements across the Ford South Africa ecosystem, including wholly owned facilities as well as supplier sites. Ockert Berry, Vice President,

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INDUSTRY FOCUS: AUTOMOTIVE

© Ford SA: Solar Energy Project

Operations, for Ford Motor Company of Southern Africa said that the economic impact of the company’s projects is invaluable.

“As part of our extensive investment in the Silverton plant, we also are building a new Fordowned and operated chassis line in the Tshwane Automotive Special Economic Zone (TASEZ) for this new vehicle programme.

“Having this new line and our major component suppliers located adjacent to the Silverton plant in the TASEZ is key to expanding our production capacity, as parts will be sequenced directly onto the assembly line. This will significantly reduce logistics costs and complexity, improve efficiency and allow us to build more Rangers for our customers,” he said.

Managing Director, Neale Hill added: “Ford’s investment in our South Africa manufacturing operations underscores our ongoing commitment to deliver ever-better

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vehicles to our customers in South Africa and around the world, while providing opportunities for our own employees, new team members and our communities.”

PROJECT BLUE OVAL The Silverton site, located east of Pretoria, received significant investment just 12 months earlier when Ford announced it would embark on a solar energy project, designed to take the entire manufacturing operation off the Eskom grid – one of the first Ford plants globally to achieve such status.

“Our aim is to achieve ‘Island Mode’,” says Cavallaro “taking the Silverton Assembly Plant completely off the grid, becoming entirely energy self-sufficient and carbon neutral by 2024.”

Labelled Project Blue Oval, this plan – in collaboration with SolarAfrica – when complete, will see the company’s site covered in 31,000 locally sourced solar panels. The

// OUR GOAL BY 2024, IS TO HAVE THE SILVERTON PLANT COMPLETELY ENERGY SELF-SUFFICIENT AND 100% CARBON NEUTRAL // installation provides 13.5MW of green energy and has been estimated at R135 million.

“Ford Motor Company has launched clear objectives to address climate change, which compel us to change our behaviour in profound and lasting ways,” said Cavallaro of this visionary approach to challenging power issues in South Africa head on. “As stated in our 2020 Sustainability Report, Ford is the only full-line automaker in the US committed to doing its part to reduce CO2 emissions in line with

FORD SOUTH AFRICA

the Paris Climate Agreement, and we are working towards stronger vehicle greenhouse standards to reduce our impact on the environment.

“An integral part of building highquality vehicles in an environmentally and socially responsible way is reducing the impact of our operations and supply chains through world-class facilities, innovative manufacturing processes and the most sustainable materials,” he adds. “Renewable energy is at the centre of this focused plan to reduce and ultimately eliminate our reliance on fossil fuels while lowering and offsetting the production of CO2 emissions.”

Globally, Ford has the goal of carbon neutrality by 2050 and aims for 100% locally-sourced renewable energy as a benchmark by 2035. Project Blue Oval is a key demonstration for what is possible around the world, and regional Ford divisions are watching on closely.

Ockert Berry is excited and proud of what is going to be achieved in South Africa. “Our goal by 2024,” he says “is to have the Silverton plant completely energy self-sufficient and 100% carbon neutral, using an integrated renewable and cogeneration energy mix comprising solar PV, biomass, biogas and biosyngas for all our electricity, gas and heating requirements. We will also be introducing 100% water recycling, and all non-fermentable waste will be repurposed through a pyrolysis system to produce syngas.

“This is a bold and pioneering step that will transform our business, helping us make an important contribution to reduce our impact on the environment,” Berry adds. “It will also make our Silverton Assembly Plant both more efficient and more cost-competitive.”

David Sonnenberg, Chief Technical Officer of SolarAfrica and Project Blue Oval provided further context on the Ford decision. “As we are all too well aware, South Africa is

MAKING CONNECTIONS POWERING TOMORROW ElectroMechanica, a proudly South African family-owned business founded in 1984, partners with leading global manufacturers to exclusively distribute innovative technologies in industrial automation, power distribution and energy management into the industrial and commercial sectors. EM has a vast portfolio of automation technologies providing innovative and simple solutions for monitoring and control applications.

Visit www.em.co.za to find out more

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INDUSTRY FOCUS: AUTOMOTIVE

currently faced with a crippling energy crisis, coupled with the ongoing threat of load shedding, ever-increasing electricity tariffs, municipal shortage of capacity, demand charges on power, and the erratic quality of this power delivery with regard to spikes and dips,” he says. “For a global manufacturing operation such as Ford’s Silverton Assembly Plant, these challenges make running a facility of this scale efficiently exceptionally difficult – both in terms of the availability of reliable energy, and escalating costs.

“An added challenge is that most of South Africa’s electricity is generated through fossil fuels, and specifically from coal-fired power stations. The high level of greenhouse gases generated exacerbates the

environmental damage and resulting climate change.

“Along with Ford, we share the vision of a zero-emission future, and we welcome Ford’s enthusiasm and passion in launching the solar energy project, and working towards the broader green initiatives in the future.”

David McDonald, MD of SolarAfrica reiterated importance and excitement of being involved in such a project. “We are delighted and proud to have been selected as the solar provider for this pioneering project, and developing what will be one of the largest solar carports in the world,” he said. “It has been a pleasure working with such a progressive team, and Ford’s commitment to reducing its carbon footprint and willingness to adopt change has been refreshing.”

RANGER & EVEREST Away from major investments that will alter the company’s future, Ford has been busy on the ground in South Africa, launching its new Ford Approved used car retail model. 94 dealerships with 1800 vehicles listed for sale are being marketed through a new website, delivered with a comprehensive 160-point presales checking process, and a 12 month roadside assistance package. With the pandemic putting pressure on spending ability, the Ford Approved programme has been extremely useful for those in the market for cheaper options with great quality.

The company says that Ford Approved customers will receive the same level of quality and professionalism that they would get when buying a new car.

// FORD MOTOR COMPANY HAS LAUNCHED CLEAR OBJECTIVES TO ADDRESS CLIMATE CHANGE, WHICH COMPEL US TO CHANGE OUR BEHAVIOUR IN PROFOUND AND LASTING WAYS //

© Ford SA: SA Ford-Silverton Assembly Plant Upgrades

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FORD SOUTH AFRICA

In the SUV market, the Ranger and the Ranger Raptor were joined in South Africa by the brand-new Ford Everest this year. The exciting new model is reportedly being touted as a serious competitor to segment leader, the Toyota Fortuner.

With new styling, which seems to be linked to the design of the worldfamous Ford F-150, the Everest also

boasts a brand-new infotainment system. It will be driven by 2.0 and 3.0 diesel engines, and a 2.3 EcoBoost in limited markets.

The Ranger Raptor has been launched with much fanfare as those looking for power have been satisfied. A 3.0 twin turbo petrol V6 delivers an 85% increase in power model-on-model. Petrol heads will

explain that this power boost brings Ford Focus ST acceleration levels to the double-cab bakkie market, appeasing those who criticised the Raptor for lack of overtaking capability at cruising speed.

With new models, new capabilities, new facilities, and new customers coming to the market, now is a great time for Ford in South Africa as it vies for top spot with the other big name international automakers.

Fortunately for the Blue Oval, rivals are not investing in the country in the long-term the same was it is.

With localisation, sustainability, and quality at the centre of its plans, Ford is proving what can be achieved by a multinational in Africa when real investments are made.

WWW.FORD.CO.ZA

© Ford SA

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